Yesterday Shmuly Yanklowitz wrote about Hurricane Sandy, FEMA, and the Need for Big Government. His blog posts are featured on The Arty Semite courtesy of the Jewish Book Council and My Jewish Learning’s Author Blog Series. For more information on the series, please visit:
If one listened only to the avalanche of political ads during the recent election campaign, one might believe that Americans were being crushed under the heaviest federal tax burden ever, and that raising taxes on the wealthy (the “job creators”) was tantamount to national economic suicide. This view, bolstered by much of the record $4-6 billion raised for the Presidential and Congressional campaigns, was heavily supported by a small group of billionaires, perhaps topped by casino magnate Sheldon Adelson, who reportedly made contributions of a record $150 million himself. In total, billions of dollars were spent by people who claimed that they were forced to spend too much in federal taxes.
In reality, Americans today have the lowest federal tax burden since 1950. Historically, in the 1950s and early 1960s the economy was very healthy, and the top income tax bracket paid around 90 percent. When tax rates were dramatically reduced for the wealthiest Americans, as in the 1920s and over the last decade and a half, brief prosperity resulted, followed by a catastrophic economic crash and the greatest inequality in wealth between the very rich and the rest of the population.